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I am a really lousy negotiator so I ...937

Belew private msg quote post Address this user
In another thread I wrestled out loud with the How to Deal with Sticker Shock idea <= CLICK

Being my own boss ... and like many others here, I have to do the price setting and the negotiation.

I think I am pretty good at setting my value ... taking into account what Will Rogers said about determining asking price. <= must read

What I am really lousy at is negotiating.




I think it comes from having lived in Japan during my young adult years. The prices were set. You paid. And you got what you paid for. There was no buyer's remorse. You didn't have to go back over and over again to get what you paid for. It just seemed good and fair business all around.

Other cultures are not that way ... the US is not like that.

The US mindset is to get the most out of the least effort. And by extension ... to pay the least for the most and to get the most from people when providing the least.

I hate negotiating ... but it has to be done.

How do you go into situations where you must negotiate?

What tactics work for you?

My best tactic ... set the appointment, send in my wife, then walk away until she gets what she wants ... which is ALWAYS way more than I would have expected.
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lunar_ranger private msg quote post Address this user
I am not the best blind negotiator around (someone who can negotiate without preparation... I can count on both my hands people close to me that do it better)and usually send them in to work out the finer details. I do very well when preparing beforehand, still I am usually much better at negotiating my fee up than talking them down on theirs.

From experience I know what not to do:

1) Forget to plan ahead (pricing, competition, alternatives).
2) Fail to understand the position and motives of the other person at the table.
3) Fail to have a clear understanding of what you want and what you're expectations should be.
4) Fail to understand the conversational style of the presenter OR fail to communicate to them in a way they understand. Cognitive dissonance creates a lot of communication issues-when determining or aligning ones needs with whats being offered.
5) Fail to build reporte at the beginning of discussions.
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Rev private msg quote post Address this user
@Belew

People on the "provide it" side often think negotiation is about price. Often their first tactic when the deal isn't being signed is to lower the price.

People on the "pay for it" side often really aren't looking for a price decrease. Oh, sure, they want the best possible price but they don't know what that is yet. They may (often do) figure the price you're asking is the best they are going to get.

So, as a provider, don't open with a discount. Instead, offer, or prove, more. Let the buyer know what they are really getting, sell the sizzle, as they say, and not the steak. Only, in my mind "sizzle" is too esoteric, ethereal. Try selling the sauce, the spices, the sides (the extras).

And if that doesn't work then it's time to ADD something MORE...

"Look, this is an amazing deal -- you've seen what you're getting -- and I really can't lower the price, but I want to make this happen for you. I'm going to include..."

And when all else failes, simply ask the prospect,

"What would it take for me to make this happen for you today?"

Of course, if you are using in-bound marketing you probably don't need any of that traditional stuff. They've already signed the check.
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Belew private msg quote post Address this user
@lunar_ranger

Dang! You have already thought about this much more than I.

No wonder I am so bad at it.
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@Rev

Great advice.

I read/heard somewhere ... "Don't make it cheaper. Make it better."
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lunar_ranger private msg quote post Address this user
@Rev When you're negotiating on your fee, I agree with you... some people are just cheap, sometimes you need to be picky of the people you do business/transact with. If a person wants something cheap- point them down the street. If someone want something done right- have them sit tight (you can work out the details, if they're willing to understand your value-and come to an equatable solution-better for you).
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Belew private msg quote post Address this user
@lunar_ranger @Rev

If it's worth it, and they need it, they'll pay for it.

Establish if the need is really there ... as in the need/want it.

Then establish the value.

Done deal.

Uh...yeah, right. If it were only that simple.
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Rev private msg quote post Address this user
"Don't make it cheaper. Make it better."

I could have said that. I didn't. But I could have.

There's a thing called the contractor's triangle. On each side is one of the words,

- Quality
- Time
- Money

Pick two. The third will suffer.

ie:

- quality, quickly, costs more.
- quality, cheaply, takes longer.
- quick and cheap, quality suffers.

Keep this in mind when evaluating, and negotiating, a deal. If you want great quality be prepared to pay what it's worth and give it the time it requires.
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@Rev

I have seen that triangle.

There seems to be an inherent mistrust sometimes... the guy just wants more money.

Why can't we (buyers and sellers) just all get along?
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tienny private msg quote post Address this user
Thanks a lot for this. No wonder I suffer financially This is the worst thing I have ever done to myself. I hope to be able to find a partner in doing business because I can't stand doing it alone. I love to brainstorm ideas instead of negotiating. My problem is putting myself in the paymaster's shoes so I lower my price too much. No wonder I feel that business sucks.
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morrnel private msg quote post Address this user
“Churchill: "Madam, would you sleep with me for five million pounds?"

Socialite: "My goodness, Mr. Churchill... Well, I suppose... we would have to discuss terms, of course... "

Churchill: "Would you sleep with me for five pounds?"

Socialite: "Mr. Churchill, what kind of woman do you think I am?!"

Churchill: "Madam, we've already established that. Now we are haggling about the price”

Perhaps this belongs in the quotes thread...
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dmortaz private msg quote post Address this user
Bill,

Few years back, I met Henry Dvorken a 90 year old Texan at a Real Estate conference. He was the person who pioneered Partial Mortgage Notes and he's literally written the book on the subject.

He thought me a simple rule that "if you can't control the price, then you need to control the terms" that to this day has helped me become a better negotiator. One party can NOT control everything and it's better when there is mutual gain for "both" sides. His coaching to me was that let the other person control ONE of them and as long as you control the other one, you will be in good shape.

In his book he has examples of deals he's done that on the face of it appears not to be a good deal. But examined closely, they are awesome wins for him.

Finally, my negotiation work on Contracts at Facebook taught me that one party might NOT get ALL they want in the 1st round of negotiations. So, leave room for the next round without damaging the relationship.

Lowball offers are just a reference point. That doesn't mean u walk away from that negotiation. It will just take a few more counters to get them to the price you are willing to consider the work.
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tienny private msg quote post Address this user
@dmortaz Good idea
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Belew private msg quote post Address this user
@dmortaz

Hmm... was his advice negotiable?

Seriously... creating a win-win scenario makes good sense.
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tienny private msg quote post Address this user
Even I prefer win win situation.
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